The Effects of Euro-zone Crisis on EU-China Partnership
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During the last two decades, the EU has developed very close cooperative relationships with China in wide‐ranging domestic and international affairs, which led to the establishment of the “EU‐China comprehensive strategic partnership” in the mid‐2000s. Based on that strategic partnership, the two sides envisioned to play a more central role in dealing with various global and regional issues and challenges, beyond the level of bilateral cooperation. The formulation of the “EU‐China strategic partnership” has thus been regarded by a group of policy‐makers and experts in Europe and China as an indication of the evolution of a new international order. In spite of the huge differences in political and social values and foreign policy orientations between the two, the decision‐makers in the EU and the Member States hoped that the EU’s employment of a unanimously benevolent and consistent engagement policy would facilitate China’s “soft‐landing,” while contributing to the EU’s basic values and interests. The Euro‐zone financial crisis since the end of 2009, however, has had great impacts on the perceptions and policies of the EU and its member states vis‐à‐vis China. With some member states under extreme economic hardship and vulnerability, China’s proactive advances into the European market and its significantly strengthened bargaining power have deepened the EU’s concerns about China, leading to a comprehensive review of its previous policy towards the latter. Nevertheless, the making and implementation of a more consistent and effective China policy seems very difficult to achieve in view of the complex and fragmented nature of the mutual relationships between the EU states. China’s adoption of an even vigorous overseas investment policy in Europe and many other parts of the world, backed by 3.3 trillion US dollars foreign currency reserve seems to have made the situation even worse. This article examines the effects of the Euro‐zone crisis on the EU‐China relations and the EU’s dilemma of developing a common foreign policy towards China.
Abstract
During the last two decades, the EU has developed very close cooperative relationships with China in wide‐ranging domestic and international affairs, which led to the establishment of the “EU‐China comprehensive strategic partnership” in the mid‐2000s. Based on that strategic partnership, the two sides envisioned to play a more central role in dealing with various global and regional issues and challenges, beyond the level of bilateral cooperation. The formulation of the “EU‐China strategic partnership” has thus been regarded by a group of policy‐makers and experts in Europe and China as an indication of the evolution of a new international order. In spite of the huge differences in political and social values and foreign policy orientations between the two, the decision‐makers in the EU and the Member States hoped that the EU’s employment of a unanimously benevolent and consistent engagement policy would facilitate China’s “soft‐landing,” while contributing to the EU’s basic values and interests. The Euro‐zone financial crisis since the end of 2009, however, has had great impacts on the perceptions and policies of the EU and its member states vis‐à‐vis China. With some member states under extreme economic hardship and vulnerability, China’s proactive advances into the European market and its significantly strengthened bargaining power have deepened the EU’s concerns about China, leading to a comprehensive review of its previous policy towards the latter. Nevertheless, the making and implementation of a more consistent and effective China policy seems very difficult to achieve in view of the complex and fragmented nature of the mutual relationships between the EU states. China’s adoption of an even vigorous overseas investment policy in Europe and many other parts of the world, backed by 3.3 trillion US dollars foreign currency reserve seems to have made the situation even worse. This article examines the effects of the Euro‐zone crisis on the EU‐China relations and the EU’s dilemma of developing a common foreign policy towards China.
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